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UPS enters European mail markets

UPS

UPS will enter the German, French and Belgian mail markets within the next few weeks. The USparcels giant, which aims to expand its European business, will start to accept international

mail – a market segment that is already fully liberalised -from February onwards. A UPSspokesman confirmed a report in German newspaper Die Welt on the new service.

In Germany, UPS will work with Swiss Post International (SPI), the international mail divisionof Swiss Post. UPS will pick up unsorted mail international from parcels and express customers andhand this over to SPI for sorting at its centre in Troisdorf, near Cologne. SPI will be responsiblefor organising the international transport and delivery of the mail through its internationalnetwork of subsidiaries and distribution partners. The main competitors to Deutsche Post inliberalised parts of the German postal market include TNT, Pin AG, a consortium formed by mediagroups, and a number of specialist mail and parcel carriers.

UPS is already active in the international mail field in the UK where it works with theinternational divisions of the Swedish and Belgian Post.  Lynx Express, which it acquired lastyear, is licensed to compete with Royal Mail in the now fully-liberalised British postalmarket.

International mail is a relatively small market segment compared to domestic mail. While the UKopened up its postal market to full competition on January 1, 2006, Germany plans to follow suit inJanuary 2008, and The Netherlands is likely to liberalise fully at about the same time. TheEuropean Commission aims for complete postal de-regulation in all member states from 2009 onwardsbut this target still needs a political agreement from the 25 governments.

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